CPSEs bottomline hit a five year low in 2019-20: Public Enterprises Survey

India’s operational central public sector enterprises’ (CPSEs) aggregate net profit registered a five year low in financial year 2019-20, the latest Public Enterprises Survey tabled in Parliament showed.

For 2019-20, they recorded an aggregate net profit of ₹ 0.93 lakh crore. In 2018-19, the aggregate net profit had peaked at ₹ 1.43 lakh crore. In 2015-16, the aggregate net profits stood at ₹1.14 lakh crore, followed by 1.25 lakh crore in 2016-17 and ₹ 1.23 lakh crore in 2017-18, the PESB Survey for 2019-20 showed.

The bottomline performance for 2019-20 was weighed down largely due to the Petroleum (refinery and marketing) cognate group, which saw a decline in net profit to ₹ 3,230 crore in 2019-20 from ₹ 32,149 crore in 2018-19, the report showed.

Of the 256 operational CPSEs, as many as 171 recorded net profit and 84 recorded net loss. One CPSE (food corporation of India) reported no profit/loss.

Meanwhile, the CPSEs contribution to Central exchequer grew from ₹ 3.52 lakh crore in financial year 2017-18 to ₹ 3.7 lakh crore in financial year 2019–20. The petroleum (refinery and marketing) cognate group held the maximum share (55 per cent) in the contribution of CPSEs to the central exchequer in financial year 2019-20. This was followed by coal, trading and marketing and power generation cognate groups.

The total value addition of CPSEs in financial year 2019-20 stood at ₹ 5.3 lakh crore, down 8 per cent over ₹ 5.8 lakh crore in 2018-19.

The Centre’s investments in CPSEs, largely driven by long term loans, grew from ₹ 11.6 lakh crore in FY 2015-16 to ₹ 21.6 lakh crore in 2019-20. The increase was mainly due to the long term loans given to the Food Corporation of India from the National Small Savings Fund and long term loan to the CPSEs in the financial sector (PFC, REC and IRFC).

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